Report No. MM 95-85 MASS MEDIA ACTION August 30, 1995
SHELBYVILLE PUBLISHING CO. DENIED WAIVER OF THE DAILY
NEWSPAPER CROSS-OWNERSHIP RULE; ASSIGNMENT OF LICENSE FOR
WLIJ(AM), SHELBYVILLE, TN, DENIED
The Commission has denied Shelbyville Publishing Co., Inc.'s
request for a permanent waiver of the daily newspaper cross-
ownership rule, thus denying Shelbyville's application to assign
the license of WLIJ(AM), Shelbyville, TN, from Hopkins Hall
Broadcasting, Inc. to Shelbyville Publishing.
The Commission, in taking this action, granted the petition
to deny filed by the Cromwell Group, which owns an AM/FM combo
licensed to Shelbyville.
Shelbyville Publishing is the owner and operator of the
Shelbyville Times-Gazette. The Times-Gazette is the only daily
newspaper published in Bedford County, TN, which is approximately
50 miles from Nashville. Although Bedford County is in the
Nashville television Area of Dominant Influence (ADI), the 33d
largest, it is not within the Nashville radio metro market, as
defined by Arbitron.
In recent appropriations measures, Congress has permitted
the FCC to amend policies with respect to waivers of the daily
newspaper/radio cross-ownership rule. This authority extends to
the top 25 markets where at least 30 individual broadcast voices
remain after a transfer and requires a finding that the public
interest would be served based on a showing that specified
benefits offset a reduction in diversity resulting from the
waiver. The Commission retains the discretion to examine other
requests for waiver of the rule on a case-by-case basis upon a
showing that such a waiver would have "unique public benefits,"
Shelbyville Publishing based its waiver request on the
"unique public benefits" of improved local news coverage and
public affairs programming on WLIJ that would be derived from
combined ownership with the Times-Gazette, which already has a
staff of reporters and editors covering local issues.
Shelbyville Publishing argued that it was unable to afford the
cost of a news staff for a small, stand-alone AM station.
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In denying the waiver, the Commission noted that it has only
granted two permanent waivers of the daily newspaper/broadcast
cross-ownership rule in 20 years, both involving major market
television stations where either the newspaper or the television
station was suffering financial hardship.
The Commission stated that Shelbyville Publishing's waiver
was based upon a showing that combined ownership of the newspaper
and radio station would have a de minimis impact on diversity and
competition in the Nashville ADI. The Commission stated also
that the impact on diversity and competition would be significant
in Bedford County, which is the relevant market because it is
served by both the newspaper and the AM station.
In sum, the Commission stated that Shelbyville Publishing
has failed to show that a waiver request outside the top 25
markets would provide "unique public benefits" that Congress
intended in connection with a change in the Commission's waiver
policy.
Action by the Commission July 31, 1995, by Memorandum
Opinion and Order (FCC 95-331). Chairman Hundt, Commissioners
Quello, Barrett, Ness, and Chong, with Commissioner Quello
issuing a separate statement.
-FCC-
News Media contact: Patricia A. Chew at (202) 418-0500.
Mass Media Bureau contact: Bill Dever at (202) 418-2689.